Changes from past year are causing home insurance blind spots
Policyholders made a lot of changes in the past year, but are they aware of the need to update their insurance coverages?
Substantial change and 2020 will always share a special connection, and 70% of insurance shoppers indicate they made significant changes during the past year that would impact their insurance policies, according to a survey by The Hanover Insurance Group, Inc.
While 7-in-10 survey respondents said they made a big change in the past year, the same amount reported having insurance blind spots in their lives due to uncertainty in the types of insurance coverages they need.
Adopting a pet (18%) and home renovations (13%) were among the most common changes and concerning insurance blind spots, according to The Hanover.
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Nearly 70% of consumers didn’t know making changes to their homes, such as adding a pool or buying a trampoline, or getting pets, means changes need to be made to homeowners policies, the survey found.
When it came to updating the home, around 30% of respondents reported remodeling a kitchen or bath, while 21% added a work-from-home space, and 15% replaced roofing or siding. While each of these projects has direct insurance implications, 63% of consumers said they were not aware home policies might need to be reviewed and updated upon completion of a renovation, The Hanover reported.
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Further, 77% said they didn’t know homes above certain price points might need special insurance coverages. A similar amount was not aware there was a difference between a home’s market value (price to sell) and its replacement value (cost to rebuild).
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“Our results showed the majority of respondents agreed it would be helpful to have their coverage reviewed by an insurance expert,” Daniel Halsey, president, personal lines at The Hanover, said in a release. “Independent agents are experienced, professional resources for consumers who want to ensure they have the appropriate insurance coverages in place to protect these investments.”
